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Amazon has always positioned itself for the long term, so it intentionally plows money back into staying ahead of competitors. As a result their competitors for
by nickbauman 11y ago
Amazon has always positioned itself for the long term, so it intentionally plows money back into staying ahead of competitors. As a result their competitors for their core business (cloud properties and technology) are far behind.
By stacking up the dollars, Apple is positioning itself to be defined by its profitability. The have an innovative edge right now, but with increasingly less differentiation technology-wise, this positioning will be hard to turn against when they need to invest in reinventing themselves. If they don't plan to reinvent themselves, they face becoming another HP down the line.
- serge2k 11y ago> their core business (cloud properties and technology) not their core business.
- nickbauman 11y agoThe core business is their most relevant line of business. Again if you're defining Amazon's core business as the largest percentage of their revenues, you're missing the point.
- nickbauman 11y agoI just checked: Cloud computing represents only 8% of their revenues but one half of their profits. So even from a purely monetary perspective, it's an easy case to make that Cloud Computing is indeed their core business.
- Cookingboy 11y agoApple re-invest a ton into their business, both in R&D and manufacturing and supply chain. It's just that the amount they invest, even though in the billions, are still too small when compare to their profit and cash reserve. They literally can't spend that much money, nobody can, Apple has enough cash reserve to fund NASA for the next 12 years for a literal moonshot project. Meanwhile Amazon's positive cash flow is less than one billion dollars per quarter and it's much easier to reinvest that much. Even if Apple fund the entire Google X, it won't register as much bigger than a blip on their cash reserve.